2nd Workshop

International Oxy-Combustion Research Network Hilton Garden Inn Windsor, CT, USA

25th and 26th January 2007

Hosted by:

Alstom Power Inc.

PRESENTATION - 22

The Saskatchewan Advantage:SaskPower Clean Coal Project Update

by: Bob Stobbs SaskPower, Canada

2nd Int'l Oxy-Combustion Workshop Page 1

SaskPower Clean Coal Project Update

2007 Jan 26

Bob Stobbs, P.Eng.SaskPower

The Saskatchewan

Advantage

IEA International Oxy-Combustion NetworkWindsor, CT

Presentation Overview

OpportunityEconomicsSustainabilityTechnologyPlan Forward

2nd Int'l Oxy-Combustion Workshop Page 2

Power Generating Facilities in SaskatchewanDecember 2006

CAPACITY NET MW

SaskPower Facilities: Coal 1,653 Hydro 853 Natural Gas 538 Wind (Cypress) 11 SaskPower Total 3,055

Independent Power Producers (IPP):

Meridian (Natural Gas) 211 Cory (Natural Gas) 228 SunBridge (Wind) 11 IPP Subtotal 450

SaskPower – Total Capacity Available December 31, 2005

3,505

Centennial Wind Facility - completed Spring 2006

150

Total Capacity Available 2006 3,655

2006 Generation CapacityAvailable (net MW)

Coal 45% Natural Gas 15%Hydro 23% Wind 5%Purchase Power 12%

Record System Peak Load:2,960 MW (net) Nov 29, 2006

CentennialWind Power Facility

150 MW

Number of Customers 444,000

Transmission Interconnection Capacity

600 MW

With: Manitoba Hydro 300 MW Basin Electric (North Dakota)

150 MW

Alberta (D.C.converter) 150 MW

Converging Issues

300 MW (near) Zero Emissions Pulverized Coal Plant in 2011?

Capacity Need

Legislated Requirement to Serve

Fuel Availability

Environmental Stewardship

Kyoto Protocol

Proven Sequestration Effectiveness

Value for CO2

Fed/Prov Cooperation (MOU)

Technical/Financial Capacity

Work of the PTRC, SRC, ITC

The Saskatchewan Advantage

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+300 MW +2 x 300 MW

SHALLOW COAL BEARING FORMATIONS

IMPERMEABLE FORMATIONS

DEEP OIL/GAS BEARING GEOLOGICAL FORMATIONS

CARBON AS COAL

CARBON AS CO2 (GAS)

ELECTRICITY

(CO2 released to atmoshpere is considered a climate altering greenhouse gas)

CONVENTIONAL COAL POWER PLANT

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SHALLOW COAL BEARING FORMATIONS

IMPERMEABLE FORMATIONS

DEEP OIL/GAS BEARING GEOLOGICAL FORMATIONS

CARBON AS COAL

CARBON AS CO2 (LIQUID)

ELECTRICITY

SaskPower's CLEAN COAL POWER PLANT

Saskatchewan

Shand Power StationPoplar River

Power Station (future)

Lignite

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LigniteOil (Williston Basin)

Poplar River Power Station

Shand Power StationWorld’s largest, full-scale,

in-field MMV (Measurement, Monitor and Verification) study with EOR

Weyburn Pool Production History

0

5

10

15

20

25

30

35

40

45

1955 1965 1975 1985 1995 2005 2015

Bar

rel/D

ay (t

hous

ands

)

WaterfloodInfillHz DrillingCO2 Flood

Economic Opportunity

2nd Int'l Oxy-Combustion Workshop Page 6

SHALLOW COAL BEARING FORMATIONS

IMPERMEABLE FORMATIONS

DEEP OIL/GAS BEARING GEOLOGICAL FORMATIONS

CARBON AS COAL

CARBON AS CO2 (LIQUID)

ELECTRICITY

SaskPower's CLEAN COAL POWER PLANT

OIL

With Cogeneration of CO2

Economics

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Two Product Streams:

Electricity:Evaluated by internal procedures

CO2 for Enhanced Oil Recovery:Evaluated by contracts in place as of June 2007

Preliminary Cost Comparison 300 MW Base Load

Clean Coal, no GHG regulations

Com

plia

ntC

oalN

Gas

C C

Cos

t of E

lect

ricity

($/M

Wh)

CO2 Sale Price ($/T)

GHG Tax???

Cle

an C

oal

2nd Int'l Oxy-Combustion Workshop Page 8

Precommittment Engineering Priority

Cle

an C

oal

Com

plia

ntC

oal

N G

as C

C

Cos

t of E

lect

ricity

($/M

Wh)

CO2 Sale Price ($/T)

Confirm

Confirm

Commit ?

Sustainability and Environmental Performance

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Mine Operation

ELECTRICITYProduced

OIL

CO2 Flood Operation

COAL

Overall COAL to OIL Process

1 Tonne Coal 0.8 MWh 2 to 10 barrels Oil

OIL IN PLACE

Produces +

ENERGY BALANCE

1 Tonne Coal 0.8 MWh 2 to 10 barrels Oil

OIL IN PLACE

Produces +

Energy Out:0.8 MWh = + 3 GJ (electrical)

2 to 10 bbl = + 12 to 60 GJ (fossil)

1 Tonne = - 13 GJ (fossil)Energy In:

Net Energy Produced: + 2 to 50 GJ (elect & fossil)

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Net Emissions Impact

1 Barrel Weyburn Crude: Equivalent to 1.0 GHG unit

OIL IN PLACE

Offsets or

1.3 to 1.4 GHG equivalents Saudi oil

1.9 GHG equivalents Alberta Oil Sands

Near Zero emissions electricity plus:

100 Years of Progress in Reducing Emissions Intensity

SaskPower Clean Coal

Unit

5

4

3

2

1

0

kg C

O2

/ kW

h

1920 1940 1960 1980 2000 2020

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Technology

COMPLIANCE COAL UNIT

CaSO4.H2O(Gypsum)

COAL

FILTER

FURNACE

Waste Storage

AIR HTR

Feedwater Heating

Loop

ASH, Water, Trace Hg Water,

Traces Ash, SO4

Activated Carbon

FGD

Limestone

Gypsum Disposal or Wallboard Plant

COAL

N2, CO2,WaterTraces

Nox,Traces SO2

STACK

AIR SEPARATION UNIT

N2

SaskPower Oxyfuel ProcessSaskPower Oxyfuel Process

95+% CO2

Traces:N2, NOx,

CO2

PERMANENT GEOLOGICAL STORAGE

COMP-RESSOR

Hg in Carbon to Disposal

AIR

Syn AIR

O2

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Shand Site Rendering

Contract Strategy

Synthetic Air Boiler – Babcock & WilcoxAir Separation Unit – Air LiquideCompression & Purification Unit – Air LiquideSteam Turbine Generator-Marubeni/HitachiOwner’s Engineer – Neill & GunterBalance of Plant - TBA

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Project Proposal

The SaskPower Clean Coal Project Proposal (end June 2007) will include:

Business Case Analyses addressing cost, risk and revenue expectationsProvisional Equipment and Construction Contracts for immediate acceptanceProvisional CO2 sales agreements for immediate acceptanceProject Execution Plan

Path Forward

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SaskPower’s Supply Decision

M A M J J A S O N D J F M A M J J2006 2007

Cost & Risk Analyses

Electric Prod’n Value

Lifecycle Cost Model

CO2 Sale Agreements, Term Sheets Offtaker Agreements

Coal Supply Agreements Formal Contract

Other Electric Supply Options

Plant Technical Definition

Base Load Supply Recommendation

Clean Coal Project

Clean Coal Project

Proposal

Alternative Supplies

Approve Clean Coal

Project?no

Accept Alternative

which may be

Develop Conventional Coal Option

Execute Plan

yes

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300 MW (near) Zero Emissions Pulverized Coal Plant in 2011?

The Saskatchewan OpportunityEnvironmentally and

Economically Sustainable Electricity Supply

On-going and Enhanced Coal Royalties

Leading Edge Clean Coal Technologies to a Huge World Market

International Clean Coal Engineering & Technology Center

Expansion of In-Province Manufacturing Commitment

Economic Spin-offs from Project Construction

Enhanced Oil Production

QUESTIONS?